A must-read for parents who want to secure their child’s future
It was the first time I held my baby in my arms. Her tiny fingers reached out for mine. I cannot find words to describe that joyful feeling. Life had changed for me. Her birth had bought out a new side in me. A more caring and responsible side. I wanted to do everything to ensure my baby girl is protected and gets nothing but the best.
My father came to visit his grand-daughter after a few days. He was overjoyed on seeing my little angel. He began talking about the time when I was an infant and how playful I was just like my daughter. I told him how these indescribable feelings had developed inside me. How my world now revolves around her, how I want to rush to her and hold her when she begins to cry. How her ease, comfort, and happiness is what matters the most today.
Looking at my excitement, my dad asked me a simple but hard hitting question. What had I done, to ensure that my baby is always secured – today and tomorrow? It was simple question, but I knew he meant something deeper. I was clueless and didn’t know what to say.
So, I asked “You have been the best dad. You ensured that all our needs were met. You had also made all arrangements to ensure our life was comfortable and fun.” He replied, “Well, that was not all that I did. I also ensured that in case something were to happen to me, you and your mom would never lack anything. This is what really made me stress-free all my life!”
I had never thought about it. What would happen to my daughter’s future if I wasn’t around? My dad saw the worried look on my face. He smiled and told me that there is nothing to worry about, but it is always good to plan ahead. He told me that there was one small thing I could do. Something as simple as taking a term life insurance cover. He told me about the term plan which was his ‘fall back option’.
Hearing ‘term plan’ I was surprised, as I had some pre-conceived notions about them. So I probed further.
I had heard that term plans are costly. My dad told me that term plans are, in fact really affordable as compared to other insurance plans! He said that at my age, a life cover of Rs. 50 Lakh would cost me only Rs. 435 a month*! Now that was definitely a good deal!
But since term insurance plans didn’t give returns, I was not very interested in them. My dad told me that they are meant to protect the family and provide financial backing in case of an unfortunate event. I didn’t know that by investing in Life and health insurance products, I could save taxes under Section 80C~ and Section 80D~ , respectively! Also I didn’t know that the pay-out, which my family would receive under life insurance product on death will be tax-free ~.
I told my dad that I had a life insurance from my company, so why take another one? He explained how it was important to review one’s life cover from time to time. Like when one gets married, has a child or takes a home loan. A term life cover should allow you to increase your life cover as per your life stage.
He also told me about some other interesting features that come with new-age term insurance plans like
- Critical illness cover – payment upfront of up to Rs. 1 cr for critical illnesses^ like cancer, heart attack and other illnesses.
- Double payout of sum assured up to Rs. 2 cr` in case of an unfortunate event because of an accident
I was also skeptical if companies settled claims. He was surprised at this. He told me that claim settlement ratios of all life insurance companies were published every year. E.g. The Claim settlement ratio for ICICI Prudential Life is 96.2%+.
My dad’s visit was a real eye-opener for me. Not only were my worries eased, but I also found a sure shot way of securing my daughter’s future.
Check Also : Term Insurance Plan Premium Calculator
*The above mentioned premium rates is for a 30 year old healthy non-smoker male for a term of 30 years with ICICI Pru iProtect Smart(Life option with a lump sum death benefit payout option and is exclusive of applicable service tax and cesses). Annual premium for Rs. 50 lakhs life cover is Rs. 5225 and monthly premium for Rs. 50 lakhs life cover is Rs. 435(under life option with a lump sum death benefit payout option and is exclusive of taxes.)
+As per IRDAI Annual Report 2015-16.
^The critical illness benefit offers coverage against 34 critical illnesses and is payable on the first diagnosis of any of the covered critical illness. The critical illness benefit is an accelerated benefit and the death benefit will be reduced by the critical illness cover paid to the policyholder. This is available only under Life & Health and All in One Options. To know more about the illnesses covered, please refer to the Sales brochure
`Subject to maximum of Rs. 2 crores and available only under Life Plus and All in One Options.
~ Tax benefits under the policy are subject to conditions under Sec. 80C, 80D, Sec 10(10D) and other provisions of the Income Tax Act, 1961. Service tax and applicable cesses will be charged extra as per applicable rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for details, before acting on above.
Policy issuance is subject to realisation of required payment and documents.